What is the final purchase?

Final purchases are transactions in which the investor changes his written position by purchasing the possibility with conditions that are similar to recently sold options. The main advantage of this type of action is that the investor can reduce or possibly even eliminate a short position associated with the relevant options. This event will tend to have a positive impact on the value of the investment portfolio and give the investor the opportunity to work with a possibility that bears a longer position.

In order to close the purchase, the seller will work with the broker to manage the right sequence in combination. The broker and the investor together evaluate the current short positions that are part of the portfolio. A short position option will be selected for sale. The broker will then manage the sale of selected options. At the same time, the intermediary identifies the purchase of the same option with a longer location and to make an order to make an order for purchase.

IIn the case, the possibility is sold with a short position, the investor fulfilled his obligation as a writer for this possibility. This leaves the investor for free to buy similar options and enjoy a longer position associated with a new purchase. As a result of this two step closing of the purchase, the investor is able to continue using the benefits of ownership of this possibility, as the date is not closed in the short term.

Although the real process is very simple, the investor and the broker often have to think about the creation of the final purchase strategy. It is important to choose the right option for the method, because the idea is to continue using the good return of the purchased options. If this option begins to reduce the value after buying a longer position, the closing purchase of the Budenevyváříje the desired result.

closed approach of this type is a common investment tool. The affecting their nature itself allows the investor to minimize losses and at the same time allows you to maximize return. Few types of transactionThis can achieve ease of closing purchase.